{"id":406,"date":"2025-02-28T17:33:25","date_gmt":"2025-02-28T18:33:25","guid":{"rendered":"http:\/\/entouragecover.com\/?p=406"},"modified":"2025-03-03T14:32:20","modified_gmt":"2025-03-03T14:32:20","slug":"education-department-removes-access-to-certain-student-loan-plan-applications","status":"publish","type":"post","link":"http:\/\/entouragecover.com\/index.php\/2025\/02\/28\/education-department-removes-access-to-certain-student-loan-plan-applications\/","title":{"rendered":"Education Department removes access to certain student loan plan applications"},"content":{"rendered":"
The Education Department says it has temporarily taken down access to applications for income-driven repayment (IDR) student loan plans in response to a court order.<\/p>\n
\u201cA federal Circuit Court of Appeals issued an injunction preventing the U.S. Department of Education from implementing the SAVE Plan and parts of other income-driven repayment (IDR) plans. The Department is reviewing repayment applications to conform with the 8th Circuit\u2019s ruling,” a department spokesperson said.<\/p>\n
\u201cAs a result, the IDR and online loan consolidation applications are currently unavailable. In the meantime, borrowers can still submit a paper loan consolidation application. The Department updated information for borrowers on StudentAid.gov, including the page about court actions related to SAVE,” they added.<\/p>\n
The SAVE plan is an IDR option the Biden administration created after its universal student debt relief hope fell; a federal judge said the plan went beyond the scope of the Education Department\u2019s authority. <\/p>\n
But other IDR plans, such as for individuals who have been paying on their loans for 20 to 25 years, are now caught in the crossfire. <\/p>\n
\u201cLet\u2019s be clear. This was a purposeful decision by the Trump Administration to harm borrowers and in no way needed to be done. Shutting down access to income-driven repayment plans was not the decision of the 8th Circuit \u2014 it was a malicious move by the Administration that will create serious hardship for millions of working families,\u201d said Natalia Abrams, president and founder of Student Debt Crisis Center. <\/p>\n
\u201cThis decision to cut off affordable repayment options, which Congress passed and borrowers rely on, is devastating. At the same time, the Administration is proposing up to $330 billion in cuts to federal aid, including student loan programs. There is absolutely no doubt that borrowers will suffer from this action,\u201d she added. <\/p>\n
It is unclear how long the applications will be down for, and student loan borrowers will not be able to sign up or switch plans until the forms are back up. <\/p>\n